In case you missed it, Finance Minister Bill Morneau announced the 2019 federal budget yesterday.
In it, he pledged $435 million for zero-emissions vehicles. That includes $300 million over three years to offer a $5,000 purchase incentive for Canadians who buy green cars. That is, you’ll get $5000 from the feds if you purchase an electric or hydrogen fuel cell vehicle. Oh, and tax write-offs. Alberta must be thrilled.
The plan comes with an interesting caveat: The vehicle must have a retail price of less than $45,000 to be eligible for the incentive. While that covers many popular electric vehicles on the market, it rules out Tesla completely. Tesla’s most affordable vehicle, the Model 3, is available in Canada for $47,600. Just as a reference, here’s what you can expect to pay for vehicles that aren’t Tesla:
Chevy Bolt – $43,195
Ford Focus Electric – $34,998
Hyundai Ioniq Electric – $35,649
Kia Soul Electric – $35,895
Nissan Leaf – $35,998
smart fortwo Electric – $29,050
Volkswagen e-Golf – $36,355
Interestingly, Tesla dropped the price of its Model 3 just a few weeks ago. Either another price drop is coming, or Canadians will have to choose between buying a Tesla and getting $5,000 back on their purchase.
“Building a better Canada also means helping people be part of the clean economy—with energy bills that they can afford, and cleaner ways to get around,” Morneau said in announcing the budget.
Furthermore, Morneau promised more affordable electricity rates to complement the federal government’s promotion of electric vehicles.